“I didn’t know it before.
Surprised when you caught me off guard.
Ice keep dropping and the drink keep flowing; try to brush it off, but it keep on going. All these scars can’t help from showing, whippin’ in the foreign and the tears keep blowing” – Post Malone
How Did I CRUSH $500,000?
The figure is hard to believe, as I listen to my motivational music. Damn, wow, half a million. I couldn’t have gotten here without saving AT LEAST 60%+ of my dividend income. I know I talk about fighting to keep each dollar, tracking all bills, watching your spending, etc.. but that has played a significant part in my journey.
However, one major item is overlooked in that process. You also should strive to create and earn as much income as possible. That will ultimately allow you to be in a better position to save. However, we all have the individuals in our lives whom are making way too much and somehow their spending consistently exceeds those marks. Therefore, I do focus each day on keeping expenses low. So much that we have many articles on the topic, such as:
5 Ways to Save $500, Starting Today
Top 5 Ways to Save on Energy during the Winter
Three Frugal Habits to Save on Energy ALL year
There would be a huge elephant in the room if I didn’t talk about Mr. Market. The stock market has pushed to new highs, which directly impacts my portfolio. Heck, the S&P 500 alone is up 21%+ YTD so far in 2019. However, for each and every year (over the last 3, at least), there has been intense discussion about a stock market decline, a recession, insert negative downturn phrase here. Guess what? Didn’t happen. Can it happen tomorrow? Yes. Can the market go up tomorrow? Yes. That is exactly why I don’t try to time or predict the market and, instead, stay invested and consistently purchase dividend stocks.
Consistently buying Dividend Stocks. That is also at the top of the list here. From saving a great deal of my income, this allows me to have the ability to invest. By using the Dividend Diplomat Stock Screener, I have been able to find undervalued dividend paying stocks out there in the market place to purchase. Here are examples, with links to the purchase articles:
October: Invested $3,300+ in 3M Company (MMM), Delta AIrlines (DAL).
August: Invested $4,700+ in Cummins, Inc. (CMI) and 3M Company (MMM).
May: Invested $4,000+ in Archer Daniel Midland (ADM), Lyondell Basell (LYB) and United Parcel Service, Inc. (UPS).
These purchases have all been updated within my Dividend Portfolio. This is a simple taste to show you that consistently buying into the market will push your portfolio higher, add dividend income and launch you closer to Financial Freedom.
However, I couldn’t have gotten to $500,000+ by just one year of investing, alone. Those that have been following this blog, know that this has been a multi-year journey. I have consistently placed capital into the stock market, each and every month, quarter, year, etc.. It’s one thing to make investments throughout 2019 and to save 60%+ of your income, but it’s also another thing when you live by the words of, “Save. Invest. Repeat.”. For example, not including 2019, I have invested $194,000 over the last 4 full years! See the listing below:
2018: $64,325.16
2017: $47,189.95
2016: $45,229.41
2015: $37,242.72
What does this include? This includes investing in my taxable, IRA, 401K and Health Savings (HSA) account. Further, this also includes reinvestment of dividends. As you can see, each year there is improvement. This is a result of a combination that includes higher income and more dividends each year being reinvested. This doesn’t include my wife’s account, just an FYI.
Why do I show this? Staying invested into the market is key and consistently buying/contribution to investments, regardless of what noise is occurring outside, no matter what. For 2019, I am currently at the same pace as last year, but may end up slightly behind that number.
What’s Next
Well, I think there’s, “only one thing left to do” and that’s, “win the whole f*ing thing”. Seriously, though, you know what’s next. 7 Figure mark. That would be the next likely destination, on this road to financial freedom.
I have been investing for 10 years and really investing with significant dollars for approximately 8 years. That’s not to discount my first few years, but I just didn’t have as much capital back then, however – those initial investments have been insanely incredible for my portfolio. If it took 10+ years to get to this point, will it take just as long to get to $1,000,000? The short answer no, but the long answer is it depends.
I actually crossed $400k and $500k in this single year alone. I crossed $300k back in 2017. The market will be the ultimate deterrent with the direction of my portfolio’s market value. What can I control?
I would say – rewind back up to the middle part of my article. I am going to consistently keep saving at least 60% of my income, each and every month. You know I will consistently invest into the stock market, specifically undervalued dividend paying and growing stocks. I will continue to repeat this.
What can’t I control? The stock market price fluctuations. I do not and will not get caught up with that, in fact…
The number does not matter
Yes, in fact, the number does NOT matter to me. It’s a symbol, it’s a milestone and I don’t want to fully downplay it, because it’s doing something that my family would never have thought would be possible, reachable, attainable or even “dream-able”. I cannot wait to look back on that and say, especially for the naysayers, “I’m just a kid from Akron, I f*ing did that.”. Goosebumps. I F*ING DID THAT. Silence.
The only number that’s important is Dividend Income.
That is the number that will take you to Freedom. That’s what you can use to pay the monthly expenses to live the life that you want. As of today, I am currently at a projected $15,566 going forward, on just my portfolio (not including my wife’s). Here is where my projected income has been at each December 31st (i.e. year end):
2018: $12,722.30
2017: $9,732.01
2016: $8,066.78
2015: $6,504.97
2014: $5,062.32
That’s what I’m really talking about! In the matter of ~5 years, I have been able to triple the amount of income going forward.
Progress is being made, each and every month. Dividends, savings turning into investments and turning off the noise to the market.
Will I get to $1,000,000? More than likely. Does it matter when, though? Nah. Not to me. It’ll be really cool to see the commas, but ultimately – it’s the income that will be used and what matters!
Also… thank YOU for following ALL of these years. Literally, this community is on fire and I love it. The passion, the knowledge, journeys and experiences has been incredible. Thank you, thank you!
What do you think? Crossing milestones? What matters the most to you? Anything you want to know about investing, saving, etc.? Please share below or message us!
-Lanny